Bhutan Government Sells $120M in Bitcoin This Year, Arkham Data Shows

The Bhutanese government has net sold approximately $120 million in Bitcoin  BTC +0.00% so far in 2026, reducing its sovereign BTC holdings by roughly 1,700 coins, according to on-chain tracking data from Arkham Intelligence.

Arkham Data Shows Bhutan’s $120M Net Bitcoin Outflow in 2026

Arkham Intelligence, which tracks labeled government and institutional wallets, identified the outflows from wallets associated with Bhutan’s state investment arm. The Arkham entity page for the Royal Government of Bhutan shows a pattern of net selling across multiple transactions this year.

The sell-off has not occurred in a single event. Bhutan reportedly offloaded $37 million in Bitcoin in what was described as its third major transfer in March alone. Earlier reporting indicated a separate $22.4 million Bitcoin sale as part of the broader drawdown.

The figures represent net selling, meaning the government may have also acquired some BTC during the same period, but outflows significantly exceeded inflows. Bhutan has not issued any official statement on the sales; the data is inferred entirely from on-chain wallet activity tracked by Arkham.

Bhutan Built Its Bitcoin Treasury Through Hydropower Mining

Bhutan’s Bitcoin holdings were accumulated not through open-market purchases but through state-run mining operations. The country’s sovereign wealth entity, Druk Holding & Investments (DHI), has operated Bitcoin mining facilities powered by surplus hydroelectric energy since at least 2019.

The scale of Bhutan’s holdings first became widely known in 2023 when Arkham publicly identified the government’s wallets, revealing a treasury that was reportedly worth over $750 million at its peak valuation. That made Bhutan one of a small number of nation-states holding significant quantities of Bitcoin alongside El Salvador and U.S. government seizure wallets.

This is not the first time Bhutan has reduced its position. Previous sell episodes occurred during 2023 and 2024 when the government liquidated portions of its holdings during periods of price strength. The current $120 million net reduction continues that pattern of periodic drawdowns from its mined supply.

Sovereign Selling Adds a Data Point to the Nation-State Bitcoin Debate

The Bhutan drawdown arrives at a time when the narrative around sovereign Bitcoin adoption faces mixed signals. El Salvador, the most prominent government Bitcoin holder, scaled back its BTC purchasing program in 2025 as part of conditions tied to its IMF loan agreement.

In terms of market impact, $120 million spread across several months of transactions represents a fraction of Bitcoin’s daily trading volume, which routinely exceeds $20 billion. The sales are unlikely to have created meaningful price pressure in isolation.

What makes the activity notable is the signal it sends. Bhutan is one of very few governments that accumulated Bitcoin through direct mining rather than seizure or speculative purchase. A sustained reduction in those holdings suggests the government is prioritizing liquidity over long-term BTC accumulation, at least for now.

Arkham’s tracking of the remaining Bhutan government wallets provides ongoing visibility into whether the selling pace continues or stabilizes. Observers monitoring the situation can track the current state of holdings directly through Arkham’s public entity dashboard for the Royal Government of Bhutan.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.